Sri Lankan apparel manufacturer Brandix will be investing Rs. 230 million to cut its carbon dioxide and carbon dioxide equivalent emissions by 10% by the end of 2010.
This follows Rs. 460 million in group-wide investments over the past two years across 85 emissions sources, including 27 manufacturing locations and 25,000 employees, which resulted in a reduction of 7% emissions, equalling 6,000 metric tonnes, according to company director A.J. Johnpillai, who was speaking at a media conference held recently to update the public on the group’s track record on cutting emissions and its plans for the future.
To put this in perspective, the Brandix group accounts for 86,322 metric tonnes of emissions per year while Sri Lanka, ranked number 88 in the world in terms of its emissions, outputs 11.9 million metric tonnes.
Prompted by Brandix chief Ashroff Omar’s 2008 announcement that his group planned to cut its carbon footprint by 30% by 2012, the status of Brandix in achieving this goal currently stands at emissions being cut by 7% between 2008 and 2010, with further anticipation of a 10% cut in 2010 and a 13% cut in 2011, all equaling a total cut of 30% by 2012; or a reduced carbon footprint of 60,000 metric tonnes by 2012 compared to 2010 levels of 71,000, 2009 levels of 80,000 and 2008 levels of 86,322 metric tonnes.
In addition, while Rs. 460 million was invested up to 2010 and Rs. 230 million is the planned 'green' investment for 2010, there are expectations that additional, similar investments will be required in the near future to meet Brandix's goal.
Officials also indicated that measures taken thus far at manufacturing facilities included skylights to allow more natural light in, retro-fitting light bulbs for greater energy savings and LED lights, steam efficiency improvements, evaporative cooling, bio mass boilers, fire burning instead of LPG gas, burning wood instead of coal, etc.
Brandix also suggested that the energy savings measures paid for themselves in the long term.
For example, in the case of its recently opened Seeduwa plant where Rs. 125 million was spent, it was anticipated that this amount would be recouped in savings by the end of 2010.
Also indicated was that the group expected to earn Rs. 15 million in income from carbon credit trading by 2011.
Interestingly, in response to questions by the media, Mr. Johnpillai revealed that the group had grown by 20% in 2009 despite a global recession which led to reduced consumer spending across the board.
While said to be primarily as a result of turnover picking up, with orders higher than the same period last year; Mr. Johnpillai also stressed that there were already significant impact due to reduced costs resulting from a greater 'green' focus, particularly by the group’s 25,000 staff. For example, it was highlighted that electricity consumption, which was at Rs. 120 million per month two years ago, had now dropped to Rs. 80 million per month in 2010.
Meanwhile, again in response to queries by the media, Mr. Johnpillai further indicated that Brandix would not be overly ‘exposed’ by withdrawal of GSP+ concessions for Sri Lankan exporters since the majority of Brandix’s exports, 60%, were to the USA and only 30% were Europe bound. |
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